| --- | --- | --- | |--------------------|-------|-------| | | | | | | | | | adidas | | | | Q3 2020RESULTS | | | | November 10, 2020 | | | | | | | | --- | --- | --- | --- | --- | |--------------------|-------|-------|-------|-------| | AGENDA | | | | | | | | | | | | INTRODUCTION | | | | | | BUSINESS UPDATE | | | | | | FINANCIAL UPDATE | | | | | | OPERATIONAL UPDATE | | | | | | OUTLOOK | | | | | 2 f 11:40:40 ● 0 0 ● 0 0 0 0 0 0 THIS SHOE ALONE WILL NA SAVE THE PLANET INTRODUCTION n READY FUK il PI SPORT - AL ...

Adidas AG (OTCQX:ADDYY) Q2 2020 Earnings Conference Call August 6, 2020 9:00 AM ET Company Participants Sebastian Steffen - SVP, IR Kasper Rorsted - CEO Harm Ohlmeyer - CFO Conference Call Participants Graham Renwick - Berenberg Jurgen Kolb - Kepler Cheuvreux Geoff Lowery - Redburn Chiara Battistini - JPMorgan Chase & Co. Antoine Belge - HSBC John Kernan - Cowen and Company Jamie Merriman - Sanford C. Bernstein & Co. Piral Dadhania - RBC Capital Markets Operator Ladies and gentlemen, thank you for standing ...

adidas Q2 2020 RESULTS August 6, 2020 AGENDA 2 01 INTRODUCTION 02 BUSINESS UPDATE 03 FINANCIAL UPDATE 04 OPERATIONAL UPDATE 05 OUTLOOK INTRODUCTION MANAGEMENT FOCUS NAVIGATING TOWARD LONG-TERM SUCCESS 4 EXECUTE THROUGH COVID-19 STORE FLEET LARGELY OPERATIONAL AT THE END OF Q2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% January: First stores in China closedMay: Business in Greater China returned to growth March: As stores in China re-opened, Rest of World closed down 83% 17% January February March April May ...

Financial Data and Key Metrics Changes - Revenue decreased by 19% in currency-neutral and nominal terms to €4.753 billion [32] - Gross margin declined by 420 basis points to 49.3% due to declines in most markets [32] - Operating margin fell by 13.5 percentage points to 1.4% [32] - Net income from continued operations dropped by 97% to €20 million, with basic EPS down 96% to €0.13 per share [32] Business Line Data and Key Metrics Changes - North America grew by 1%, but had double-digit growth until the end of February before store closures [33] - Greater China saw a significant decline of 58%, particularly impacted around the Chinese New Year [33] - E-commerce sales increased by 35% for the full quarter, 55% in March, and triple-digit growth in early April [34] Market Data and Key Metrics Changes - Asia Pacific was the most severely impacted region with revenues down 45%, primarily due to a sales decline of around €800 million in Greater China [37] - Europe experienced a decline of 11%, while Latin America was flat and North America saw a slight increase of 1% [39] - The adidas brand was down 20%, while the Reebok brand was down 12% [35] Company Strategy and Development Direction - The company is focusing on health and sport becoming more important to consumers post-crisis, with an accelerated move towards a health-oriented global population [20][21] - There is a strong emphasis on digital transformation, with a shift towards a more direct-to-consumer (D2C) model [22][23] - The company plans to leverage e-commerce as a key growth area, reallocating resources to enhance digital sales [70][71] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented challenges posed by the COVID-19 pandemic, with 60% of the business completely closed since mid-March [7][31] - The outlook for Q2 anticipates a revenue decline of more than 40%, with operating losses expected to be in the triple-digit minimum range [102] - There is confidence in a recovery, particularly in China, with expectations of a gradual reopening of stores in Europe and North America [105][106] Other Important Information - The company has accessed an additional €3 billion through a syndicated loan to ensure liquidity during the crisis [62][68] - Marketing investments remained stable in the first two months of the year, with a focus on e-commerce [41][53] - The company has suspended dividends and share buybacks to preserve cash [61] Q&A Session Questions and Answers Question: Can you break out the components of the 420 basis points decline in gross margin in Q1? - The decline was driven by market mix, FX, limited promotional activities, and significant costs related to cancellation of purchase orders [114][115] Question: How much of the sharp increase in e-commerce growth was driven by promotional activity versus underlying demand? - There was a mix of promotional and non-promotional revenue, with more promotions occurring in the latter part of the quarter [116][117] Question: What is the strategy for inventory with channel partners outside China? - The approach will differ from China, focusing on strategic planning and adjustments to manage inventory levels effectively [125][126]

adidas Q1 2020s Herzogenaurach, April 27, 2020 AGENDA | --- | --- | --- | --- | --- | |-------|-------|--------------|--------------------|-------| | | | | | | | 01 | | INTRODUCTION | | | | 02 | | | BUSINESS UPDATE | | | | | | | | | 03 | | | FINANCIAL UPDATE | | | 04 | | | OPERATIONAL UPDATE | | | 05 | | OUTLOOK | | | 2 a 2 /华 10 INTRODUCTION ik UNPRECEDENTED TIMES AROUND THE GLOBE, IN SPORTS AND FOR ADIDAS 4 ~ Almost all countries around the world impacted by the coronavirus outbreak Global and local sport ...

Financial Data and Key Metrics Changes - The company achieved a topline growth of 6% for the full year, in line with the guidance of 5% to 8% [19] - Gross margin remained stable at 52%, with an operating margin of 11.3% [19][40] - Net income grew by 12%, exceeding the guidance of 8% to 12% [19] Business Line Data and Key Metrics Changes - The North American business grew by 7%, reaching €4.8 billion, while Greater China saw a 15% increase, totaling €2.7 billion [20] - The eCommerce segment experienced a remarkable growth of 34%, approaching €3 billion [20] - Reebok reported a 12% revenue growth in North America, contributing to its overall performance [12] Market Data and Key Metrics Changes - All markets recorded sales growth for the first time since 2016, with double-digit increases in Asia Pacific and emerging markets [27] - Europe returned to growth with a 3% increase, while North America faced challenges due to supply chain issues [31] - Emerging markets grew by 13%, despite geopolitical tensions [32] Company Strategy and Development Direction - The company is focused on driving topline and market share growth while expanding operating margins [8] - Sustainability remains a key priority, with initiatives aimed at ending plastic waste and increasing the use of recycled materials [55][56] - The company plans to leverage major sporting events in 2020 to enhance product activation and consumer engagement [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth despite supply chain challenges and the impact of the coronavirus [26][82] - The company anticipates a slight decline in gross margin in 2020 but expects to maintain an industry-leading level [42] - The long-term growth story in China remains intact, with expectations of returning to a sustainable growth path post-crisis [82] Other Important Information - The company returned approximately €1.5 billion to shareholders through dividends and share buybacks in 2019 [49] - The equity ratio decreased to 36% due to the implementation of IFRS 16, but the balance sheet remains strong [48] - The company has a robust marketing strategy, maintaining high relative spending in the industry [106] Q&A Session Summary Question: Confidence in clearing inventory in China - Management is confident in clearing inventory through factory outlets, even if it means discounting [96] Question: Management incentives amid coronavirus impact - The Supervisory Board has added market share targets for the China business to management incentives, ensuring appropriate motivation [97] Question: Approach to managing marketing budget - The company plans to maintain its marketing budget but will adjust spending based on market conditions, ensuring investments make sense [106]

| --- | --- | |-------|--------| | | | | | adidas | FINANCIAL SUPPLEMENT FOR FULL YEAR 2019 TABLE OF CONTE NT Consolidated Statement of Financial Position 03 Consolidated Income Statement 05 Consolidated Statement of Comprehensive Income 06 Consolidated Statement of Changes in Equity 07 Consolidated Statement of Cash Flows 08 To enhance readability, registered trademarks as well as references to rounding differences are omitted in this publication. 02 ADIDAS FINANCIAL SUPPLEMENT FOR FULL YEAR 2019 CONSOLIDA ...